Two MLP Bets with Fiscal-Cliff Friendly Yields

Master limited partnerships have lagged stocks this year, but that offers opportunity for yield-starved investors.

What do the U.S. energy boom and investor thirst for yield have in common? They've both caused investors to flock to master limited partnerships – and send fund companies scrambling to offer new ways to invest in them. And in this case the trend continues to be friendly: Energy-focused partnerships should continue to benefit from the U.S. energy renaissance, leading to MLP yield growth.

Energy MLPs own pipelines and other oil-and-gas assets. To avoid taxes at the corporate level, MLPs return most of their cash flow as...